Chinese steel exports could remain low in 2019

** Jefferies says Chinese steel exports are likely to remain low in 2019, but it is possible exports increase "modestly"

** China's exports unexpectedly fell the most in two years in December, pointing to further weakness in the economy in 2019 and deteriorating global demand

** Brokerage says fall in Chinese exports in 2018 despite Yuan's depreciation and domestic market volatility offers "welcomed breathing room" to Western markets

** Jefferies says ArcelorMittal remains its preferred play on a "structurally improved" global steel market

** Brokerage says Thyssenkrupp and Voestalpine  stand out in Europe, while it prefers MT and SSAB

** In the U.S., Nucor, Steel Dynamics, Commercial Metals Co and Reliance Steel & Aluminum  offer "defensive positioning"